Performance Management

By

Peter Anyebe(http://www.linkedin.com/pub/peter-anyebe/17/292/589)

We have followed Ralph Christensen to define the goal of Performance Management, PM in the following three, 3 phrases:

We have also identified the following three, 3 types of Value:

People Value, C Organisational Value, ROI Business Environment, EB

Then we found the following relationship between the factors C and ROI:

Given the factor-C therefore, the factor-ROI would be determined automatically. This relationship enables us to put Labour on the shelf like other commodities. This means that entrepreneurs can decide the ROI they wish to have at the planning stage of their business.

The right work force , In the right environment, Delivering profitable business growth.

1 C = 1 – 1/X, ROI = 2X – 1

C = Character of Consistency ROI = Return on Investment

C ROI1.02 1001.04 501.07 301.11 201.22 102.0 33.0 25.0 1.5

Moreover, organizations can improve on ROI by optimizing the factor-C. It is people who make ROI. Specifically, we follow the Pareto Principle or 80-20 Rule to identify the 20%ters as the livewire of the organization. By this principle, 80% of the work in most organizations is done by 20% of the personnel. Performance Management, PM would therefore aim to make 20%ters. It would aim to create the enabling environment in which the 80%ters play catch-up with the 20%ters.

This can be achieved when Talent is central to PM, being the engine behind the creation of all value. When we leverage on talent, we can expect to win in the market place. Moreover, talent can now be learned. We have suggested the following two, 2 techniques for this purpose:

The Duality Series, DS The Organizational Kit, Org-K

Talent is fully developed when people perform at task by the standard procedure. The DS outlines the standard procedure for the performance at task. And the Org-K is a systematic reduction of Jobs into Activities, Duties, Tasks, and the derivation of the Standard Procedure for the performance at each of these tasks. When these are used in the following analyses, the 80%ters have the opportunity to catch-on with the 20%ters:

Employability Performance Appraisal Skill Gaps

In this case performance is appraised as the amount of stress suffered in the creation of ROI. Formally:

EBPF = , F ≥ 1 EBG

F = Stress (Performance Index)EB = Business EnvironmentP = Personal EnvironmentG = Organisational Environment

The Business Environment, EB is evaluated on the following model:

Although given the factor-C, ROI is determined automatically, this is subject to the Business Environment, EB which is evaluated in the following four, 4 steps:

Find the Factor-C Predict ROIExpected

Find ROIActual

Apply the above model

The Business Environment, EB is a function of the following factors:

Entrepreneurship Labour Governance – Security

- Law and Order

- Infrastructure

Although Governance is out of the reach of HR, Labour and Entrepreneurship are within our influence. A Performance Management Model that is based on the two, 2 technologies and the three, 3 analyses suggested above, would enhance the value of Labour.

ROIE

EB = , EB ≥ 1 ROIA

EB = Business Environment ROIE = Expected Return on Investment ROIA = Observed Return on Investment

When the model is operated within a philosophical framework in which employees have to pass through the hierarchy listed below, Entrepreneurship would also be optimized, to maximize the value of the Business Environment, EB:

Entrepreneur Management Leadership Labour

In this case, employees enter an organization as Labour, and grow to become Leaders in their various professions. This qualifies them for Management positions. With the experience in leadership and management, they are equipped to become astute Entrepreneurs when they exit the organization.

These procedures remove PM from being mere form-fairs. Moreover, they position HR strategically to lead organizations into the much desired sustained growth.

The Content of Character, C

Stimulus

Attitude Motivation Rn Pc Ability

Personality, F Response

√n

Given the factor-Pc, Rn = 2Pc – 1 √n = 1/C Pc2

C = (3Pc + 1)/4 F = Rn/√n Vc = 2F - 1

Pc = Phenomenological Compression IndexRn = Rationality Index√n = Standard Procedure IndexC = Character IndexF = Index of PersonalityVc = Index of Core Values

Human Resource• Value Creation• Talent

Systems• Training

Systems• Reward

Systems• Work

Processes 1 C = 1 – 1/X, ROI =

Engineering• Production• Raw Materials• Design – Product/ Process • Machinery• Packaging

Accounting• Profit / Loss• Investment Capital• Demand-Supply• Procurement / Storage• Logistics –

Handling/Delivery

• Knowledge Management

• Management by Objectives

• Lean-6 Sigma• Total Quality

Management

• Balanced Score Card

1. Mgt by Objectives Work Culture 2. Balanced Score Card 6. Lean-6 Sigma 3. Emotional Intelligence 5.Total Quality

Strategic HR

Leadership Hierarchy

The Organizational Kit: A systematic derivation of tasks, for the standardization of Work Processes Basis for:

Skill Gaps Analysis Performance Appraisal Recruitment T-AID Retention

Organizational Goal/Values Jobs, 6 Duties, 36 Activities, 216 Typical PM Procedure Tasks, 1296 - Objectives Standard Procedure, 7776 - KPIs HR Dept F Rw - Competencies Rw = 1/(1-1/F) -3 0.75 - Targets RI = EBP/EBG, -2 0.67 - Ratings HR + Staff RI = F 1.5 3.00 - Rewards Rw = Reward 2.0 2.00 RI = Reward Index 3.0 1.50 EB = Business Environment 4.0 1.30 (Personal/Organisational

• Talent systems• Training systems• Reward systems• Work processes

“Talent is the engine behind the creation of all value”

Establishment of the Concept of Whole-Spectrum-Knowledge

Recall that by the Perception Model of Mind, PMM a mind that is working optimally would reduce phenomena into the five, 5 essential components

Recall also the F-Scale, and that at Po = 0.98, people are able to satisfy, and at once contain the unsatisfied need

This is when people are able to identify up to four, 4 of the five, 5 essential items required by the PMM

This is also when people are able to turn what they know, into what they do

The graphs of the PMM and F-Scale are plotted, to cross at f0 = 0.98 and f1 = 4, for f0 = Po and f1 = Nu.

-0.2 0 0.2 0.4 0.6 0.8 1

Change, f1 0.21 0.25 0.31 0.43 0.66 1.31 5

Learning, f0 0 0.67 1.33 2 2.67 3.33 4

0.5

1.5

2.5

3.5

4.5

5.5 People Issues(Knowledge → Action)

Development, f0

Grow

th, f

1

Learning

Conversion Point

Change

f1 = (1/(4 – z))2, z = 2(1/(1 – f0/4))2

The PMM

f1 = Perception, Nu = 5f0 = Sensation, Nu = 1

No = (10f0 + 2)/3 No = No. of Items Identified f0 = Sensation The F-Scale